May 29-30, 1981
05-29-1981
Pages 133-139
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
May 29, 1981
The Board of Regents met in special session on the above date in
the Carlson Education building, University of Nevada, Las Vegas.
Members present: Vice Chairman John R. Mc Bride, Presiding
Mr. James L. Buchanan, II
Mrs. Lilly Fong
Mrs. Dorothy Gallagher
Mrs. June Whitley
Members absent: Mr. Robert A. Cashell
Ms. Frankie Sue Del Papa
Mr. Chris Karamanos
Mr. John Tom Ross
Others present: President William Berg, NNCC
President Joseph Crowley, UNR
President Jack Davis, WNCC
President James Eardley, TMCC
President Judith Eaton, CCCC
President Leonard Goodall, UNLV
President Clifford Murino, DRI
Vice Chancellor Larry Lessly
Secretary Bonnie Smotony
The meeting was called to order by Vice Chairman Mc Bride at
9:50 A.M. Mr. Mc Bride explained that Chairman Cashell and Chan-
cellor Bersi had been called to Carson City on legislative mat-
ters and had asked that the meeting proceed without them.
1. Proposed Professional Salary Schedule for 1981-82
Mr. Mc Bride presented the following memorandum from Chan-
cellor Bersi:
A meeting of the System Professional Compensation Com-
mittee and the Officers of the University of Nevada
System was held on Wednesday, May 27, 1981, for the
purpose of developing a recommendation for the alloca-
tion of the 14% increase in professional salaries pro-
vided by the 1981 Legislature.
In accordance with consensus reached by the Compensa-
tion Committee and the Officers, it is recommended that
the 14% increase be distributed among continuing faculty
in the following manner:
(1) 11% be distributed as an across-the-board increase
by an appropriate adjustment in each step of cur-
rent salary schedules.
(2) 3% be reserved for distribution as additional step
increases, for correction of inequities, or for
recognition of merit, with actual distribution to
be determined within each institution following
consultation between the faculty and the Adminis-
tration of that institution.
Resulting salary schedules were distributed and are filed
with permanent minutes.
Mr. Buchanan stated his regret that only 3% was available
for recognition of merit and expressed concern that out-
standing faculty could become discouraged and leave.
Dr. Eric Martin, UNLV Senate Chairman, express his concern
that the amount provided for professional salary increases
falls short of that provided by classified employees.
Dr. Crowley commented on the special problems faced by the
School of Medicine as a consequence of the substantially
higher salaries paid to its faculty. He stated that a 14%
increase cannot be accommodated without a sacrifice in
programs, and reported that the Department Chairmen of the
School of Medicine have indicated their willingness, after
consultation with the faculty, to accept on behalf of the
faculty less than 14% as an increase. He requested that
the motion reflect that flexibility for the School of
Medicine.
Mrs. Fong moved approval of the Chancellor's recommendation
including the request for flexibility in the application of
the salary increase to School of Medicine faculty. Motion
seconded by Mrs. Gallagher, carried without dissent.
2. Proposal for Financing Facility for Diesel Mechanics
Program, NNCC
President Berg reported that the Diesel Mechanics Program,
which had been initiated at NNCC through a CETA grant, had
been funded by the 1981 Legislature and a facility will be
needed in which to continue the program.
He noted that the program has been operated in a rented
facility. In the 5-year budget presented when requesting
the new program, building rental was projected at $95,000.
However, cost studies have shown that a suitable facility
can be constructed by the College at a total capital in-
vestment of $75,000, with an additional $15,000 to make it
usable for the program.
Dr. Berg requested that up to $90,000 be made available as
a loan from the Board of Regents Special Projects Account
to be repaid over a 5-year period from program funds which
would otherwise be allocated for annual rent payments.
Mrs. Gallagher moved approval. Motion seconded by Mrs.
Whitley, carried without dissent.
In discussing the proposal, it was suggested that alter-
native sources for repaying the loan other than State ap-
propriation be explored, beginning with the 1983-85 bien-
nium.
3. Acceptance of Gift, UNR
President Crowley reported that the Wolf Club, through the
efforts of Robert Mc Donald and Robert Sullivan, had raised
a total of $550,000 in contributions for the purpose of ex-
pansion and beautification of Mackay Stadium. The Wolf Club
has offered to use these funds to cover the cost of con-
struction of 34 executive boxes for the stadium, under the
following conditions:
A. The boxes will be built by the Boosters and donated
to the University of Nevada, Reno;
B. Each donor of $15,000 to this gift fund will be of-
fered a 20-year lease on one of the boxes.
Mr. Buchanan pointed out that UNLV plans to sell boxes in
the new pavilion for an initial $25,000 donation, and
$20,000 per year thereafter. He questioned why UNR would
not wish to impose a higher price on these proposed boxes.
Dr. Crowley explained that these boxes will be in the foot-
ball stadium, whereas Mr. Buchanan is referring to a bas-
ketball pavilion. He also pointed out that the purpose of
the boxes for the pavilion is to provide operating costs,
whereas the purpose of the boxes proposed for Mackay Stadium
is to provide funding for construction.
Mr. Dick Trachok, Athletic Director for UNR, stated that
after the initial $15,000 is paid, the donor must still
purchase 8 season tickets per year. He also confirmed
that all of the boxes had been sold and there is a wait-
ing list.
Mrs. Whitley moved approval. Motion seconded by Mrs.
Gallagher, failed to receive 5 affirmative votes with Mrs.
Fong casting an opposing vote.
Mrs. Fong explained that she was concerned that this would
not generate income, and that she also shared Mr. Buchanan's
concern that this would establish a precedent which would
have an adverse effect on sale of boxes for the pavilions
at a substantially higher price.
President Crowley pointed out that the effect of the vote
would be to reject a $550,000 gift offered to the Univer-
sity.
It was agreed that the record would reflect that this action
would not establish a precedent affecting the future sale of
executive boxes at either of the pavilions.
Mrs. Fong asked that her vote be changed to affirmative.
The Chair declared the motion carried.
4. Proposed Change in Underwriting Team
Mr. Mc Bride recalled for the record that in November, 1979
the Board approved a management underwriting team, consist-
ing of Paine, Weber, Jackson and Curtis as the senior man-
agement underwriter, with Bache, Halsey, Stuart, Shields,
Inc., Dean, Witter, Reynolds, Inc., and Merrill, Lynch,
Pierce, Fenner and Smith, Inc. functioning as co-managers,
for the revenue bond issue for the two sports pavilions.
Burrows, Smith and Company was retained as the financial
consultant for the issue.
UNS has recently been informed by the Bache firm that
since their recent acquisition of Burrows, Smith and Co.,
they are unable to serve as both a member of the under-
writing team and as financial consultant. They have,
therefore, withdrawn to allow Burrows, Smith to continue
as the University's financial consultant for the issue.
Mr. Mc Bride reported that Chancellor Bersi recommends
that Sutro and Company, a Nevada firm with an office in
Reno, be added to the underwriting team.
Mr. Buchanan moved approval. Motion seconded by Mrs.
Gallagher, carried without dissent.
5. Request for Allocation from Board of Regents Special
Projects Account
Mr. Mc Bride presented a request from Chancellor Bersi
for an appropriation of $1000 from the Board of Regents
Special Projects Account to underwrite part of the costs
of the Special Olympics to be held on the UNLV Campus in
June.
Mrs. Fong moved approval. Motion seconded by Mrs.
Gallagher, carried without dissent.
Mr. Mc Bride reported that two additional items required con-
sideration as emergency items - a recommendation for student
fee increases and a recommendation for action on an investment
matter.
Mrs. Fong moved that the following matters be added to the agenda
as emergency items. Motion seconded by Mrs. Gallagher, carried
without dissent.
6. Recommendation for Changes in Portfolio
Mr. Monte Miller requested approval of the following trans-
actions in the University's portfolio managed by Valley
Bank:
Account #52-000113-2
SELL AT MARKET
Shares Description Proceeds Gain/Loss
1,800 Pittston @28 $ 50,400 $ 1,210
2,400 Internorth @30 72,000 33,671-
SELL STOP
2,300 ASARCO @40 7/8 94,012 3,232-
TOTAL $216,412 $ 35,693-
Mrs. Gallagher moved approval. Motion seconded by Mrs.
Whitley, carried without dissent.
In response to a question from Mr. Buchanan concerning why
the banks could not be given the authority to make deci-
sions which would protect the University against losses
sustained when the market changes, Mr. Lessly explained
that the banks cannot act without Board approval and the
Constitution requires that the Board control all such
transactions.
7. Recommendation for Student Fee Increases
Mr. Mc Bride presented the following recommendation from
Chancellor Bersi:
As part of the appropriation approved by the 1981 Legisla-
ture, the following increases in the per-credit registra-
tion fee and the out-of-state tuition were recommended:
(1) The out-of-state tuition to be increased from $750 to
$1000 per semester.
(2) The per-credit registration fee for the Universities
to be increased from $24 to $28 in 1981-82 and to $30
in 1982-83.
(3) The per-credit registration fee for the Community
Colleges to be increased from $13 to $16 in 1981-82
and to $17 in 1982-83.
The Officers recommended that the Work Program be prepared
to reflect projected revenue which these fee increases
would provide and that adoption of the new fee schedule
be included on the June 12 agenda of the Board of Regents.
Mr. Mc Bride explained that the Chancellor proposed to
bring this recommendation back to the Board meeting at its
next meeting for approval but there needed to be some sig-
nal from the Board that the projected revenues be used in
the development of the Work Program.
Mrs. Fong moved approval of the Chancellor's recommendation.
Motion seconded by Mrs. Gallagher, carried without dissent.
8. New Business
A. Mr. Buchanan distributed a letter requesting that the
next agenda include discussion of the Ed. D. program at
UNLV and the report in the media that a moratorium had
been placed on the program. He suggested that imposi-
tion of a moratorium on any degree program was the
prerogative of the Board and suggested that Dean Kunkel
be requested to attend the June 12 meeting and that the
Administration be prepared to discuss this matter.
B. Mr. Mc Bride asked that the June agenda include con-
sideration of the establishment of the School of
Medicine as a separate entity within the UNS, report-
ing to the Office of the Chancellor.
The meeting adjourned at 11:30 A.M.
Bonnie M. Smotony
Secretary of the Board
05-29-1981